Press Release - Brazilian Finance Minister on Greece and IMF
The minister of Finance, Guido Mantega, received today in his office the Brazilian executive director in the International Monetary Fund (IMF), Paulo Nogueira Batista Jr. As governor of Brazil in the IMF, the minister listened to the explanations about the stance of the executive director on the disbursement of resources to Greece, in the context of the agreement of that country with the Fund.
The minister reiterates that there was a communication problem about the decision taken by the executive director to abstain in the vote and that the Brazilian government favors the disbursement of the tranches of the Greek program. Executive directors of the IMF often have to take several decisions per week and it is not always possible to consult the governor of the IMF, the minister of Finance in the case of Brazil. The understanding is that, in issues of greater importance, a consultation is necessary and indispensable.
It should be stressed, however, that an abstention does not have any practical effect on the disbursement in question, given that this type of disbursement is approved by the Executive Board by a simple majority of weighted votes and that a director that abstains is excluded from the basis on which the required majority is calculated.
On the other hand, both are of the view that the rescue programs for Greece and other countries of the periphery of the euro area need to be revised and improved so as to provide better chances of recovery for these countries.
Paulo Nogueira has had a relevant role in the Executive Board of the IMF since his nomination in 2007. He has been diligent and has acted in tune with the Brazilian government and enjoys, as has always enjoyed, political support of the minister of Finance and governor of Brazil in the IMF to carry out, and to continue carrying out, his responsibilities as IMF executive director.